This paper aims to find evidence for the improvements on the present earnings forecast models through analyzing the correlation among financial ratios, auditor opinion of listed companies and their future earnings. This paper uses two statistical regression methods including Logistic model and Linear model to examine the inner interaction between financial ratios and future earnings from qualitative and quantitative perspectives respectively. Empirical tests find that financial ratios, especially ROE, can help to predict future earnings. Then we add auditor opinion variable into Logistic model to test whether going concern opinion in the auditor reports can be helpful for earnings forecast. Result shows the degree of optimistic statement of going concern opinion is significantly correlated with future earnings but with the disturbance of earnings management.
